First quarter net revenue of $253.3 million, down 19.1%
year-over-year; on a same-store basis, net revenue declined 10.6%
year-over-year excluding net revenue contributed from businesses sold
or exited during the past year and the effect of foreign exchange rate
fluctuations

Global liquidity of $78.8 million at quarter-end, up $34.8 million
year-over-year; total outstanding debt of $80.0 million, down $17.1
million year-over-year and further reduced in February by $30.0
million to a current level of $50.0 million

Commenting on Volt’s first quarter performance, Michael Dean, President
and CEO, said, “Overall, Volt’s first quarter results were mixed. We
continue to benefit from our ongoing focus on achieving operational
efficiencies and managing expenses, which has enabled the Company to
consistently deliver lower selling, administrative and other operating
costs. However, our ability to generate top line growth continues to be
impacted by lower revenues in our North American Staffing segment,
driven in part by a single large customer that has significantly reduced
their reliance on temporary staffing. Excluding this customer from the
current and prior periods, revenue declines over the past several
quarters have been smaller and relatively steady. And as previously
outlined, our entire team is actively implementing detailed initiatives
to turn the top line.”

Mr. Dean continued, “I am very pleased with the new $115.0 million
long-term financing agreement completed during the quarter with DZ Bank.
We expect to save approximately $1.5 million over the term of the new
agreement, driven by improved pricing as well as lower fees compared
with our previous financing program. Along with the better pricing, the
new facility has less restrictive financial covenants and fewer
restrictions on use of proceeds. In fact, the new facility provides more
available liquidity than our previous facility that had a capacity of
$160.0 million. Overall, this financing program greatly enhances our
financial flexibility and debt maturity profile, while providing the
Company with additional resources to execute our business strategy and
advance our capital allocation plan.”

Fiscal 2017 First Quarter Results

Total revenue for the fiscal 2018 first quarter was $253.3 million, down
$59.7 million, or 19.1%, compared to $313.0 million in the first quarter
of fiscal 2017. On a same-store basis, net revenue declined 10.6%
year-over-year excluding net revenue contributed from businesses sold or
exited during the past year and the effect of currency fluctuations.

North American Staffing revenue, which provides a broad spectrum of
contingent staffing, direct placement, recruitment process outsourcing
and other employment services, was $206.2 million, a $25.7 million, or
11.1% decrease, compared to North American Staffing revenue of $231.9
million in the first quarter of fiscal 2017. The decline was driven by
lower demand from customers in both professional and commercial job
families, as well as a significant change in a large customer’s
contingent labor strategy in the latter part of fiscal 2017.

International Staffing revenue, which includes the Company’s contingent
staffing, direct placement and managed service programs businesses in
Europe and Asia, was $29.6 million, a $0.8 million, or 2.5% decrease,
compared to $30.4 million from the first quarter of fiscal 2017.
Excluding the impact of foreign exchange rate fluctuations, revenue
declined $3.2 million on a constant currency basis compared to the first
quarter of fiscal 2017. The decline was primarily a result of softening
economic demand in the United Kingdom, offset by strong growth in
Belgium and Singapore.

Corporate and Other revenue, which now primarily consists of the
Company’s North American managed service business and the Company’s call
center business, was $18.7 million, down $33.3 million, or 64.0%,
compared to $52.0 million in the first quarter of fiscal 2017. The
year-over-year revenue decline was primarily driven by the impact from
the sale of Maintech and the quality assurance business, which occurred
early in the second quarter of fiscal 2017 and at the end of the fourth
quarter of fiscal 2017, respectively. On a same-store basis, excluding
businesses sold or exited of $32.0 million, Corporate and Other revenue
decreased $1.3 million, or 6.3%, year-over-year, as a result of winding
down of certain programs in the Company’s managed service business as
well as normal fluctuations in call center activity.

Selling, administrative and other operating costs in the first quarter
of fiscal 2018 decreased $2.0 million, or 4.0%, to $46.9 million from
$48.9 million in the first quarter of fiscal 2017. This decrease was
primarily due to ongoing cost reductions throughout the business as well
as the sale of Maintech and the quality assurance business. These
decreases were partially offset by higher legal fees and depreciation
and software license expenses related to the completion of the first
phase of the upgrade of the Company’s back-office financial suite and
information technology tools.

Loss from continuing operations was $10.7 million in the first quarter
of fiscal 2018, down $6.1 million compared to a loss of $4.6 million in
the first quarter of fiscal 2017.

Adjusted EBITDA, which is a Non-GAAP measure, was a loss of $9.1 million
in the fiscal 2018 first quarter, down $8.6 million from a loss of $0.5
million (Non-GAAP) in the year ago period. Adjusted EBITDA excludes the
impact of special items, interest expense, income taxes, depreciation
and amortization expense, other income/loss and share-based compensation
expense. For a reconciliation of the GAAP and Non-GAAP financial
results, please see the tables at the end of this press release.

Liquidity

As of January 28, 2018, the Company had $78.8 million of global
liquidity as compared to $44.0 million at January 29, 2017.

Corporate Developments

During the first quarter, the Company entered into a long-term accounts
receivable securitization program with DZ Bank and exited its financing
relationship with PNC Bank, National Association. Under the terms of the
new agreement, DZ Bank will provide a two-year, $115.0 million facility
which permits borrowings until January 25, 2020. The Company expects to
save approximately $1.5 million over the term of the program and now has
more available liquidity compared to its previous agreement. The new
facility has less restrictive financial covenants and fewer restrictions
on the use of proceeds, improving the Company’s available liquidity,
enabling the Company to continue to advance its capital allocation plans.

Conference Call and Webcast

A conference call and simultaneous webcast to discuss the fiscal 2018
first quarter financial results will be held today at 4:30 p.m. Eastern
Time / 1:30 p.m. Pacific Time. Volt’s President and CEO Michael Dean and
CFO Paul Tomkins will host the conference call. Participants may listen
in via webcast by visiting the Investor & Governance section of Volt’s
website at www.volt.com.
Please go to the website at least 15 minutes early to register, download
and install any necessary audio software. The conference call can also
be accessed by dialing 877-407-9039 (201-689-8470 for international
callers) and reference the "Volt Information Sciences Earnings
Conference Call."

Following the call, an audio replay will be available beginning
Wednesday, March 7, 2018 at 7:30 p.m. Eastern Time through Wednesday,
March 21, 2018 at 11:59 p.m. Eastern Time. To access the replay, dial
844-512-2921 (412-317-6671 for international callers) and enter the
Conference ID # 13676899. A replay of the webcast will also be available
for 90 days upon completion of the call, accessible through the
Company's website at www.volt.com in
the Investors & Governance section.

This press release contains forward-looking statements that are subject
to a number of known and unknown risks, including, among others, general
economic, competitive and other business conditions, the degree and
timing of customer utilization and rate of renewals of contracts with
the Company, and the degree of success of business improvement
initiatives that could cause actual results, performance and
achievements to differ materially from those described or implied in the
forward-looking statements. Information concerning these and other
factors that could cause actual results to differ materially from those
in the forward-looking statements are contained in company reports filed
with the Securities and Exchange Commission. Copies of the Company’s
latest Annual Report on Form 10-K and subsequent Quarterly Reports on
Form 10-Q, as filed with the Securities and Exchange Commission, are
available without charge upon request to Volt Information Sciences,
Inc., 1133 Avenue of the Americas, New York, New York 10036, Attention:
Shareholder Relations. These and other SEC filings by the Company are
also available to the public over the Internet at the SEC’s website at http://www.sec.gov
and at the Company’s website at http://www.volt.com
in the Investor & Governance section.

Reconciliation of GAAP loss from continuing operations to
Non-GAAP loss from continuing operations:

GAAP loss from continuing operations

$

(10,694

)

$

(4,577

)

Selling, administrative and other operating costs

(486

)

(a)

(486

)

(a)

Restructuring and severance costs

518

624

(Benefit) provision for income taxes

(1,052

)

(b)

-

Non-GAAP loss from continuing operations

$

(11,714

)

$

(4,439

)

Three Months Ended

January 28, 2018

January 29, 2017

Reconciliation of GAAP loss from continuing operations to
Adjusted EBITDA:

GAAP loss from continuing operations

$

(10,694

)

$

(4,577

)

Selling, administrative and other operating costs

(486

)

(a)

(486

)

(a)

Restructuring and severance costs

518

624

Depreciation and amortization

1,852

1,379

Share-based compensation expense

435

615

Total other (income) expense, net

607

1,330

(Benefit) provision for income taxes

(1,360

)

623

Adjusted EBITDA

$

(9,128

)

$

(492

)

Special item adjustments consist of the following:

(a)

Relates to the amortization of the gain on the sale of the Orange,
CA facility, which is included in Selling, administrative and other
operating costs.

(b)

Relates to a discrete tax benefit resulting from the expiration of
uncertain tax positions in Q1 2018.

Note Regarding the Use of Non-GAAP Financial Measures

The Company has provided certain Non-GAAP financial information, which
includes adjustments for special items and certain line items on a
constant currency basis, as additional information for its segment
revenue, consolidated net income (loss), segment operating income (loss)
and Adjusted EBITDA. These measures are not in accordance with, or an
alternative for, generally accepted accounting principles (“GAAP”) and
may be different from Non-GAAP measures reported by other companies.

The Company believes that the presentation of Non-GAAP measures on a
constant currency basis and eliminating special items provides useful
information to management and investors regarding certain financial and
business trends relating to its financial condition and results of
operations because they permit evaluation of the results of the Company
without the effect of currency fluctuations or special items that
management believes make it more difficult to understand and evaluate
the Company’s results of operations. Special items include impairments,
restructuring and severance as well as certain income or expenses not
indicative of the Company’s current or future period performance and are
more fully disclosed in the tables.

Adjusted EBITDA is defined as earnings or loss before interest, income
taxes, depreciation and amortization (“EBITDA”) adjusted to exclude
share-based compensation expense as well as the special items described
above.

Adjusted EBITDA is a performance measure rather than a cash flow
measure. The Company believes the presentation of Adjusted EBITDA is
relevant and useful for investors because it allows investors to view
results in a manner similar to the method used by management.

Adjusted EBITDA has limitations as an analytical tool and should not be
considered in isolation from, or as a substitute for, analysis of the
Company’s results of operations and operating cash flows as reported
under GAAP. For example, Adjusted EBITDA does not reflect capital
expenditures or contractual commitments; does not reflect changes in, or
cash requirements for, the Company’s working capital needs; does not
reflect the interest expense, or the cash requirements necessary to
service the interest payments, on the Company’s debt; and does not
reflect cash required to pay income taxes.

The Company’s computation of Adjusted EBITDA may not be comparable to
other similarly titled measures computed by other companies because all
companies do not calculate these measures in the same fashion.

NEW YORK--(EON: Enhanced Online News)--Volt Information Sciences, Inc. (“Volt” or the “Company”) (NYSE-AMERICAN: VISI), an international provider of staffing services and managed service programs, ... more »

NEW YORK--(EON: Enhanced Online News)--Volt Information Sciences, Inc. (NYSE-AMERICAN:VISI) today announced that it has revised the release date of its second quarter fiscal 2018 results to Thursda... more »